The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector.

Micro and Small enterprises

Term loans and working capital facility

The guarantee cover available under the scheme is to the extent of 75 per cent of the sanctioned amount of the credit facility.
The extent of guarantee cover is 80 per cent for:

• (i) Micro enterprises for loans up to Rs.5 lakh;
• (ii) MSEs operated and/or owned by women; and
• (iii) All loans in the North-East Region.

The credit is provided under the scheme to the lending institutions, for collateral security or third party guarantee, the MSEs seeking for loans can contact these lending institutions. To know more about the scheme visit: http://www.cgtsi.org.in/ or http://www.dcmsme.gov.in/schemes/sccrguarn.htm